Carnival's Q3 revenue, net income rise on strong demand

Overview

• Cruise operator's Q3 revenue and net income rise on strong demand

• Company completed $1.2 bln in share repurchases year to date

• Record Q3 customer deposits rose nearly 7% despite flat capacity growth

Outlook

• Carnival raises 2026 adjusted net income outlook by more than $150 mln vs June guidance

• Company expects 2026 adjusted net income of approx. $3,080 mln and adjusted EPS of $2.24

• Carnival sees Q4 2026 adjusted net income of approx. $274 mln and adjusted EPS of $0.20

Result Drivers

• DEMAND STRENGTH - Co said all-time high net yields and revenues were driven by accelerating demand and strong booking trends

• COST DISCIPLINE - Co said improved fuel consumption per ALBD and adjusted cruise costs excluding fuel contributed to operational improvement

• HIGHER FUEL PRICES - Co said increased fuel prices drove up cruise costs and reduced gross margin yields

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

• Wall Street's median 12-month price target for Carnival Corporation Ltd is $33.00, about 49.1% above its September 28 closing price of $22.14

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)